Asian markets mostly rise on optimism for trade, stimulus

HONG KONG: Most Asian
markets rose Tuesday on the back of hopes for central bank and government
stimulus measures around the world, while investors were also cheered by
further signs of easing tensions in the China-US trade war.

Trading floors around
the world have been tense for several weeks owing to concerns about a number of
factors including the trade war, Brexit, a global economic slowdown and
tensions in the Middle East.

However, while markets
remain on edge, equities have enjoyed a positive start to the week, with
Germany reportedly planning government support to avert a recession in Europe’s
biggest economy and central banks elsewhere looking to ease monetary policy.

Among the key events
this week is a speech by Federal Reserve boss Jerome Powell at the annual
Jackson Hole symposium of central bankers in Wyoming.

His remarks will be
pored over to see if he hints at another interest rate cut following last
month’s move, and if so how deep it will be. However, some analysts have
pointed out that while the US economy is showing signs of slowing, it remains
healthy and Powell could decide no new help is needed just yet.

The Fed policy board
“did not unanimously agree to the last 0.25 percent cut,” said Jeffrey Halley,
senior market analyst for Asia-Pacific at OANDA. “US economic data continues to
perform blissfully, implying the economy is doing just fine.

“Against that backdrop,
I struggle to see why… Powell would hit the panic button at Jackson Hole this
week. The financial markets could be setting themselves up for an ugly
correction into the week’s end.”

Tokyo stocks open
higher, tracking US rallies: Tokyo stocks opened higher on Tuesday, taking a
positive lead from Wall Street where stocks rose for a third straight session.

The benchmark Nikkei
225 index was up 0.21 percent, or 42.19 points, at 20,605.35 in early trade,
while the broader Topix index climbed 0.27 percent, or 4.07 points, to
1,498.40.

“Japanese shares will
continue trying to recover as investors are welcoming continued rallies in the
US and a halt to the yen’s gain,” Online Okasan Securities said in a note.

“US and European
equities had a solid night boosted by confirmation the US commerce department
will delay its ban on (Chinese telecoms giant) Huawei for another 90 days,”
said Rodrigo Catril, senior FX strategist at National Australia Bank.

“Equity markets were
also boosted by further speculation that the German government is preparing to
ease fiscal policy with the news also fuelling a rise in core global bond
yields,” added Catril.